Related Articles
Top Stories
Feb 13 2012 12:15
Miner Xstrata says it has brought forward maintenance on two furnaces to assist Eskom to save power.
Feb 13 2012 10:43
Although jobs were created, the economy is still 420 000 jobs short of the peak employment level before the 2009 global financial crisis, says Adcorp.
Feb 13 2012 07:58
Greek lawmakers have approved a new round of drastic austerity measures after a long day of street battles between police and protesters left dozens injured.
Johannesburg - Chemical services group Omnia has put forward a dual dividend option to shareholders, which analysts say is a good tactic to conserve cash.
The scheme gives shareholders the option to either receive a cash payout as a final dividend at 145c per share, or to receive additional shares under its capitalisation award scheme.
Shareholders who opt for the latter will receive 2.54 shares for every 100 ordinary shares held.
Capitalisation shares are usually issued when a company has accumulated large reserves which cannot be distributed as dividends in cash.
"You could argue this is a way to conserve cash, but I think it's more to position the company for solid growth in the years to come," said Omnia MD Rod Humphris.
"Rather than do away with the dividend, what companies are trying to do at the moment is pay out as little as possible," commented an analyst.
Trading at 5 750c/share on Wednesday, Omnia shareholders looking for short-term yields will be better off to choose the cash payout as the formula used for the allocation of additional shares was based on a 5 902c share price.
Also, Omnia shares may come under further pressure as the company has warned trading conditions would deteriorate.
The last day for trading in the company's shares-cum-dividend will be Friday July 17.
- Fin24.com